What is Order Management Costs

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National Network of DSD Distributors & Retail Owners

Mr. Checkout is a network of over 1,100 independent distributors and 50,000 independent retail owners across the USA, parts of Canada and the Caribbean. Distributors and independent retail owners use Mr. Checkout to find new products that are ready for retail and can handle rapid growth through independent channels.

 

 

 

 

Define Order Management Costs

One of the elements comprising a company’s total supply chain management costs. These costs consist of the following: 1. New Product Release Phase In and Maintenance: This includes costs associated with releasing new products to the field, maintaining released products, assigning product ID, defining configurations and packaging, publishing availability schedules, release letters and updates, and maintaining product databases.
2. Create Purchaser Order: This includes costs associated with creating and pricing configurations to order and preparing purchaser order documents.
3. Order Entry and Maintenance: This includes costs associated with maintaining the purchaser database, credit check, accepting new orders, and adding them to the order system, as well as later order modifications.
4.Contract/Program and Channel Management: This includes costs related to contract negotiation, monitoring progress, and reporting against the purchaser’s contract, including administration of performance or warranty-related issues.
5. Installation Planning: This includes costs associated with installation engineering, scheduling and modification, handling cancellations, and planning the installation.
6. Order Fulfillment: This includes costs associated with order processing, inventory allocation, ordering from internal or external suppliers, shipment scheduling, order status reporting, and shipment initiation.
7. Distribution: This includes costs associated with warehouse space and management, finished goods receiving and stocking, processing shipments, picking and consolidating, selecting carriers, and staging products/systems.
8. Transportation, Outbound Freight, and Duties: This includes costs associated with all company-paid freight duties from point of manufacturer to end purchaser or channel.
9. Installation: This includes costs associated with verification of site preparation, installation, certification, and authorizationof billing.
10. Purchaser Invoicing/Accounting: This includes costs associated with invoicing, processing purchaser payments, and verification of purchaser receipt.

 

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DistributorNational Network of DSD Distributors & Retail Owners

Mr. Checkout is a network of over 1,100 independent distributors and 50,000 independent retail owners across the USA, parts of Canada and the Caribbean. Distributors and independent retail owners use Mr. Checkout to find new products that are ready for retail and can handle rapid growth through independent channels.